A proposed Bitcoin-linked ETF from BlackRock has re-entered the regulatory spotlight, as the U.S. Securities and Exchange Commission resumes its examination of Nasdaq’s listing request.
The move follows earlier procedural delays and signals that the agency sees unresolved regulatory questions tied to the fund’s structure.
Key Takeaways
The SEC has reopened its review of BlackRock’s Bitcoin income ETF, moving the proposal back into active regulatory consideration.
The fund aims to generate yield through option strategies rather than offering pure spot Bitcoin exposure.
A final decision is expected by December 31, with potential implications for future Bitcoin ETF structures.
Rather than fast-tracking a decision, the SEC has opened formal proceedings, a step typically reserved for proposals that fall outside established frameworks. This does not indicate rejection, but it confirms that the product requires deeper scrutiny than standard spot Bitcoin ETFs.
An ETF Built for Yield, Not Just Price Exposure
Unlike traditional Bitcoin ETFs that aim to mirror price movements, BlackRock’s iShares Bitcoin Premium Income ETF is designed around income generation. The fund would employ option-writing strategies, selling call options linked to the iShares Bitcoin Trust (IBIT) or to benchmarks tracking spot Bitcoin exchange-traded products.
Alongside these strategies, the portfolio would hold spot Bitcoin, IBIT shares, and cash, creating a hybrid structure that blends direct exposure with yield-oriented mechanics.
Why the Listing Rules Became a Roadblock
The ETF’s active management model has been the central challenge in its approval process. Nasdaq initially sought to list the fund under generic standards created for passively managed commodity trust shares, a mismatch that quickly drew regulatory hesitation.
Complicating matters further, the product allows for over-the-counter options and does not yet rely on a dedicated surveillance market. These features placed it outside the traditional boundaries of the rule set, prompting Nasdaq to pursue approval under Rule 5711(d) instead.
Regulatory Shifts May Change the Outcome
Since the initial delay, the regulatory environment has begun to evolve. Nasdaq has already received SEC approval for updates to its commodity-based trust listing rules, expanding what can qualify under generic standards.
These changes could play a pivotal role not only for BlackRock’s proposal, but also for other Bitcoin-related funds that blend spot exposure with derivative strategies.
December Deadline Looms for a Final Decision
The SEC now faces a hard deadline of December 31 to either approve the ETF, deny the application, or extend the review period once again. The outcome will help define how far U.S. regulators are willing to go in allowing more complex Bitcoin investment products into public markets.
Meanwhile, the agency is also reviewing proposals related to FLEX options tied to IBIT, reinforcing the idea that institutional-grade Bitcoin strategies are moving beyond simple buy-and-hold models.
